As per The Companies (Acceptance of Deposits) Rule 2014 – deposit shall not include – “ any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription to any securities, including share application money…..” It is further clarified that if the amount is not allotted within 60 days of receipt and not refunded within 15 days of completion of 60 days, then the amount shall be treated as deposit. Now, if a company is having share application money as on 31/03/2014, i.e. amount received under earlier Act and not allotted within 60 days of receipt. Also, it could not be refunded with 15 days of completion of 60 days. I have query- whether this amount be treated as deposit or not, as the amount received as share application money under Companies Act 1956 not in the provision of this Act.

Fund raising

Posted By: Sanjay 10 year(s) ago